High call and data costs driven by tax burden

Zim Now Writer

Heavy taxes on Zimbabwean Mobile Network Operators are behind the high cost of communication in the country, a report has revealed.

The recently released "Zimbabwe - Telecoms, Mobile and Broadband - Statistics and Analyses" report tracks the costs that MNOs face.

Call and data costs have been regularly going up across the board.

Some of the taxes MNOs pay are 5 percent health levy, 15 percent VAT, 25 percent corporate tax, 3 percent universal service fees and 2 percent on mobile money transfers

In addition to high taxes, MNOs face as infrastructure and network upgrades, passing on the cost to the consumers.

Because they pay for international bandwidth and network equipment in foreign currency, MNOs increased tariffs in tandem with local currency performance/

Charges have gone up April 2019 (23 percent), November 95 percent, while a 55 percent hike was effected in March 2020.

A 20 percent adjustment was effected in 2022 while government imposed another 10 percent on internet service providers (ISPs).

Government also imposed a $50 levy on all imported smartphones as the 25 percent put in place in 2021 was being evaded by most dealers.